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BackThe EU Council of Ministers for Employment and Social Affairs adopted the Platform Work Directive on 11 March 2024. Previously, two attempts to adopt the Directive had failed, even though an agreement had already been reached in December 2023. The Directive addresses precarious working conditions in the platform economy and strengthens the role of trade unions.
On 11 March 2024, despite Germany abstaining and France voting against, the Platform Work Directive was adopted by a qualified majority in the Council. This agreement can be described as historic, as never before has an EU legislative act been pushed through against the votes of the two largest EU Member States, Germany and France. 25 EU Member States voting in favour of the Directive ensured the required qualified majority. The Directive is intended to protect employees working through online platforms, such as bike messengers or food delivery workers, and to strengthen their rights. The aim is to transfer bogus self-employed workers into a dependent employment relationship with all the rights and obligations of a dependent employee. The EU Commission estimates that over 5 million of the more than 40 million platform workers in the EU could be misclassified as bogus self-employed.
An end to bogus self-employment?
The most important point of the new regulation is the the legal presumption of an employment relationship and the reversal of the burden of proof. If an employment relationship is presumed, it is up to the platform to prove that there is no employment relationship. This is a considerable improvement for employees or their representatives in legal disputes. It is also important to note that, where the existence of an employment status has been ascertained of one platform worker, all other employment relationships will be subject to scrutiny where appropriate. The criteria as to what constitutes an employment relationship are now to be defined at Member State level. The Commission as well as the European Parliament and the trade unions would have clearly favoured a uniform EU regulation.
New rules for algorithmic management
The most important regulation in so-called algorithmic management ensures that no dismissal may take place without human oversight. Access to information for employees and, in particular, their representatives (e.g. AK or trade unions) is also ensured. Explanations can be requested for all automated decisions. The rights of employee representatives with regard to access to information in legal disputes have also been confirmed. Comprehensive safeguards for representatives were confirmed contrary to the wishes of France. AK also requested communication channels between employees and employee representatives that cannot be monitored by platforms. This request has now been met.
Discussion and outlook for Austria
According to a study, platform technologies can certainly contribute to improvements in working conditions and local economic growth, apart from often being consumer-friendly. However, achievements such as the minimum wage, special payments for summer holidays and Christmas, sick leave or paid annual leave must not be bypassed. AK therefore welcomes the adoption of the Directive. However, the implementation of the Directive at national level is now crucial. In Austria, some specific questions arise in connection with the status of “freie Dienstnehmer:innen” - a third category between self-employed and employees that does not exist in many other EU Member States. Austria has issued a protocol statement on the Council decision, according to which the status of “freie Dienstnehmer:innen” will remain in place. AK and ÖGB are calling for all loopholes to be closed. The discussion is likely to continue at national level, with ÖGB and ETUC President Wolfgang Katzian emphasising: "The intention of the Directive is clear: no more second-class workers in the EU."
The responsible Employment and Social Affairs Committee of the EU Parliament has adopted the Directive on 19 March 2024. In April 2024, the plenary of the EU Parliament will cast its vote before the Directive can enter into force. Afterwards, the Member States have two years to implement it.
Further information:
Council: Platform workers: Council confirms agreement on new rules to improve their working conditions
ÖGB: Katzian: Keine Arbeitnehmer:innen zweiter Klasse mehr in der EU (No more second-class workers in the EU) (German only)
ETUC: Platform work: trade unions win for millions of workers
FEPS: The Platformisation of Work in Europe
AK EUROPA: Stop bogus self-employment - labour rights must apply to all workers
AK EUROPA: Improving working conditions in platform work
AK EUROPA: Policy Brief: Platform Work